New DFARS Proposed Rule: What Government Contractors Need to Know About Foreign Ownership Disclosure and Risk Mitigation

On May 7, 2026, the U.S. Department of Defense (DoD) proposed a new Defense Federal Acquisition Regulation Supplement (DFARS) rule titled “Mitigating Risks Related to Foreign Ownership, Control, or Influence” that would impose significant new disclosure and risk mitigation obligations related to beneficial ownership and foreign ownership, control, or influence (FOCI) across the defense supply chain. The rule is ambitious in scope—applying well beyond cleared entities—and raises serious questions about whether its implementation will be workable in practice.  

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